HomeMy WebLinkAbout1987 Police and Fire Retirement System Annual ReportI
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Forty -Fourth Annual Financial Report
of the
Police and Fire Retirement System
City of Lansing, Michigan
Year Ended December 31, 1987
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City of Lansing
Police and Fire Retirement System
Annual Financial Report
Year Ended December 31, 1987
Table of Contents
Table of Contents
Letter of Transmittal
Administrative Organization
Balance Sheets
Statement of Revenues, Expenses and
Changes in Fund Balance
Statements of Changes in Financial Position
Changes in Fund Balance Reserves
Securities
Common Stock
Investment Portfolio Analysis
Statement of Membership
Retirants and Beneficiaries
Members Retired During 1987
Beneficiaries Added to Roll 1987
Terminations 1987
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Page
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2-4
5
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10-12
13-14
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19
20
Terry J. McKane, Mayor
Board of Trustees
Police and Fire Retirement System
City of Lansing, Michigan 48933
Dear Trustees:
FINANCE DEPARTMENT
James W. Dowsett, Director of Finance
831 City Hall
Lansing, Michigan 48933
(517) 483-4500
July 31, 1988
Presented herewith is the Forty -Fourth Annual Report of the Secretary covering
operations of the Police and Fire Retirement System for the year ended December
31, 1987.
BALANCE SHEET
Fixed income securities totaled $33,205,912 on December 31, a decrease of
$3,493,296 during the year.
Of the $33,205,912 fixed income securities, $6,850,000 are rated "AAA",
$4,138,000 are rated "AA", $7,340,000 are rated "A", $1,670,000 are rated "BBB",
and $13,207,912. are government and agency bonds. These securities mature from
August 1, 1989 to January 15, 2010"and have interest rates ranging from 4.25% to
15.5%.
We hold $17,024,688 of government and agencies bonds, and the balance in
public utilities, 'industrial, transportation, finance, municipals and real estate
bonds. The net unamortized premium and discount decreased by $424,595 during
the year and accrued interest at December 31, 1987 increased by $54,607.
In addition to the above fixed income securities, the Retirement System
owned 878,700 shares of various common stocks at a cost of $31,839,855 and U.S.
Treasury notes, repurchase agreements and trust demand notes totalling
$16,533,360.
The Reserve for Employee Contributions increased by $371,685 during the
year under review. Active member accounts of 475 totaled $7,452,147, 3 deferred
retirement.of $52,486, 5 inactive accounts totaled $24,582 and 24 duty disability
accounts totaled $329,052. The above 507 members represent 84,674 service credit
months.
According to our Actuary, the Reserve for Employer Contributions increased
$16,319,180 and the Reserve for Benefit Payments increased $3,656,583 during the
year, making a total increase of $19,975,763.
Total reserved fund balance on December 31, 1987 was $115,131,708 with net
R assets of $80,058,473, leaving an unfunded accrued liability of $35,073,235, or
-2-
"Equal Opportunity Employer"
an increase of $10,025,887 during the year. This increase results primarily
from a Board approved change to a new valuation method. This recommendation by
the actuary allocates a larger portion of total liabilities to accrued liabilities
which are then amortized over a 30 year period. This resulted in a modest
reduction in the City contribution rate, but does not negatively impact on the
financial soundness of the financial system.
REVENUES AND EXPENDITURES
City contributions amounted to $3,600,590 during the year. Member contri-
butions during the year totaled $662,237 and refunds of member contributions
(those leaving the system prior to retirement) totaled $33,694.
For the year, the cost of investment services totaled $416,033. The interest
and dividends on investments was $4,726,519 and the net gain on the exchange of
securities was $6,215,947 for a total increase of 16% in the average book value
of assets of $69,426,460. Market value of the assets was 6% below book value at
December 31. During the year, $215,626 in interest was credited to the Reserve
for Employee Contributions, $7,290,462 in interest and dividends was credited to
the Reserve for Employer Contributions and $3,436,378 in interest was credited
to the Reserve for Benefit Payments.
Net benefits paid totaled $4,434,005. There were 335 retirees on the roll
at December 31. Age and service retirees totaled 266, 49 were duty disability,
4 duty disability beneficiaries,* 1 non -duty disability, 1 non -duty disability
beneficiary, 8 were non -duty death beneficiaries and 6 duty death beneficiaries.
Eighteen members retired during the year having an average age of 54 years
and an average service credit of 30 years. Annual pension benefits of these
retirees will total $466,409, increasing annual pension benefits payable by the
System to $4,564,107.
Six retirees died during the year with total annual benefits of $75,979.
Five of the retirees that died during the year had beneficiaries and they will
receive a total yearly benefit of $40,942.. Four widows were reinstated with
total annual benefits of $16,159.
GENERAL COMMENTS
The actuarial evaluation at December 31, 1987 indicates that the rate of
contributions should be 28.07% of total valuation payroll. There are budgeted
funds included in the 1988-89 City of Lansing budget for the City's contribution
to the Retirement System in accordance with the actuarial recommendations.
There were significant*amendments to Michigan investment law in 1982. The
level of assets which may be invested in stocks was increased from 25% to 60%.
There was a broadening of allowable investment grade holdings and a new definition
of fiduciary responsibility and authority.
Progressive steps have been taken to facilitate the ongoing review of invest-
ment policy and procedures and to maximize investment return. Custodial services
have been contracted with the National Bank of Detroit to provide for the direct
deposit and reinvestment of dividends and interest and proceeds from the sale of
securities. This "state of the art" service also provides for more efficient
recordkeeping. The Board of Trustees has selected 4 outside money managers;
Harbor Capital Management Company, Inc. and Lazard Freres Asset Management Company
to handle equity investments and Loomis Sayles & Company and M.D. Sass Investors
-3-
Services•, Inc. to handle fixed income investments. Performance evaluation services
are contracted with Prudential-Bache Funds Evaluation Services to provide for -
quarterly reports on investment performance and as a management tool for evaluating
the results of investment policy decisions.
From December 31, 1984 through June 30, 1988, the Fund has earned an
annualized total rate of return of 12.7%. Total investment performance exceeded
the Fund's objective of CPI plus 4% by 5.4 percentage points. The Actuarial
Valuation Report concludes that the Retirement Sytem is in very good actuarial
condition. Sound provision is being made for the increasing number of retirement
allowances expected in future years. It has been a pleasure to work with the
Board of Trustees in the past year, and with your continued surveillance and
support, the employees of our City can be assured the benefit of one of the
finest retirement systems in the country.
JWD:ls
Respectfully submitted,
James W. Dowsett
Finance Director
-4-
City of Lansing
Police and Fire Retirement System
Board of Trustees
December 31, 1987
Gary R. Powers, Fire, Chairperson 12-31-89
William E. Barkyoumb 12-31-92
Appointed Citizen, Vice Chairperson
Terry J. McKane, Mayor Indefinite
Antonio Benavides, City Council Indefinite
Brian Kuchik, City Treasurer Indefinite
Russell McKenzie, Police 12-31-87
John Hunnell, Police 12-31-90
John B. Cushman, Jr., Fire 12-31-91
Secretary.........................................James W. Dowsett
Legal Advisor........................................Alvan P. Knot
Actuary...............................Gabriel, Roeder, Smith & Co.
Medical Director...............Lansing Occupational Medical Center
Office: 8th Floor, City Hall, Lansing, MI 48933
Phone: (517) 483-4500
-5-
City of Lansing
Police and Fire Retirement System
Balance Sheets
+� December 31,
Assets 1987 1986
Cash on deposit
$ 63,243
$ 23,547
Investments, at cost or amortized cost:
Repurchase agreement
1,667,356
452,900
Trust demand notes
9,066,004
8,840,081
U.S. Government obligations and U.S. Government
agencies, market value $13,869,979 and
$24,098,951
14,072,891
22,550,556
Other marketable securities, market value
$22,069,529 and $14,363,289
22,978,426
14,119,461
Common stocks; market value $28,286,188 and
$25,625,575
31,839,855
23,494,126
Total investments
79,624,532
69,457,124
Accounts receivable
62,612
Accrued interest receivable
792,918
738,311
Dividends receivable
94,467
63,454
Total assets
$80,575,160
$70,345,048
Liabilities and Fund Balance
Liabilities:
Warrants payable
$ 380,507
$ 366,484
Accounts payable
136,180
241,652
Total liabilities
516,687
608,136
Fund balance:
Reserved for employee contributions 7,858,267 73*486,582
Reserved for employer contributions 54,635,840 383,316,660
Reserved for benefit payments 52,637,601 48,981,018
Total reserved fund balance 115,131,708 94,784,260
Unreserved (deficit) (35,073,235) (25,047,348)
Total fund balance 80,058,473 69,736,912
Total liabilities and fund balance $80,575,160 $70,345,048
City of Lansing
Police and Fire Retirement
System
Statements of Revenues. Expenses and
Changes in Fund Balance
Year ended
December 31,
1987
1986
Operating revenues:
Contributions by employees
$ 662,237
$ 604,076
Contributions by City
3,600,590
3,900,000
Total contributions
4,262,827
4,504,076
Income from investments:
Interest and dividends
4,726,519
4,644,404
Gain (loss) on sale of investments
6,215,947
3,949,768
Total investment income
10,942,466
8,594,172
Total operating revenues
15,205,293
13,098,248
Operating expenses:
Investment services
416,033
399,114
Payment to.pensioners & beneficiaries
4,434,005
3,956,772
Contributions refunded to former employees
33,694
16,953
Total operating expenses
4,883,732
4,372,839
Net income
10,321,561
8,725,409
Fund balance, at beginning of year
69,736,912
61,011,503
Fund balance, at end of year
$80,058,473
$69,736,912
-7-
City of Lansing
Police and Fire Retirement System
Statements of Changes in Financial Position
Sources of funds:
Operations - net income
Changes in components:
Increase (decrease) in assets:
Cash on deposit
Investments
Accounts receivable
Accrued interest receivable
Dividends receivable
Decrease (increase) in liabilities:
Warrants payable
Accounts payable
Increase in funds:
Year ended December 31,
1987 1986
$10,321,561 $8,725,409
39,696
10,167,408
(62,612)
54,607
31,013
(14,023)
105,472
$10,321,561
(43,441)
8,872,671
58,757
46,905
(4,108)
(64,800)
(140,575)
$8,725,409
Iff:13
Balance, January 1, 1987
Additions:
Contributions by employees
Contributions by City
Income from investments
Total balance & additions
Transfers on retirement
Actuarial adjustment in unfunded
accrued liability
Total revised balances
Deductions:
Investment services
Payment to pensioners &
beneficiaries
Contributions refunded to
former employee
Total deductions
Balance, December 31, 1987
City of Lansing
Police and Fire Retirement System
Changes in Fund Balance Reserve
Fund Balance
Reserved for
Employee
Contributions
$7,486,582
662,237
215,626
8,364,445
(472,484)
7,891,961
33,694
33,694
$7,858,267
Fund Balance
Reserved for
Employer
Contributions
$38,316,660
3,600,590
7,290,462
49,207,712
(4,181,726)
10,025,887
55,051,873
416,033
416,033
$54,635,840
Fund Balance
Reserved for
Benefit
Pavments
$48,981,018
3,436,378
52,417,396
4,654,210
57,071,606
4,434,005
4,434,005
$52,637,601
1987 Total
Reserved
Fund
$94,784,260
662,237
3,600,590
10,942,466
109,989,553
10,025,887
120,015,440
416,033
4,434,005
33.694
4,883,732
$115,131,708
1986 Total
Reserved
Fund
Balance
$87,102,412
604,076
3,900,000
8,594,172
100,200,660
(1,043,561)
99,157,099
399,114
3,956,772
16.953
4,372,839
$94,784,260
SECURITY
-----------------------------------
DEMAND
NBD BANKS SHORT TERM INVESTMENT
MANUFACTURERS (B.O.L. REPO)
TOTAL DEMAND
COMMERCIAL PAPER
AMERICAN EXPRESS CO
FORD MOTOR CREDIT CORP
FORD MOTOR CREDIT CORP
TOTAL COMMERCIAL PAPER
U.S. GOVERNMENTS
USA TREASURY SECURITIES STRIPS
USA TREASURY NOTES SER. P
USA TREASURY NOTES SER Q
COUPON TREASURY RECEIPTS
UAS TREASURY NOTE
USA TREASURY NOTES SER C
USA TREASURY NOTE
USA TREASURY SECURITIES STRIPS
TOTAL U.S. GOVERNMENTS
AGENCIES
FEDERAL NATIONAL MORTGAGE ASSN
CALIFORNIA CREDIT CARD TRUST
FEDERAL HOME LOAN BANKS SER. M
FEDERAL NATIONAL MORTGAGE ASSN
FEDERAL NATIONAL MORTGAGE ASSN.
FEDERAL HOME LOAN MORTGAGE CORP.
INTERNATIONAL BK FOR RECON & DEVEL
TOTAL AGENCIES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
SECURITIES (EXCEPT COMMON STOCK)
DECEMBER 31, 1987
NOMINAL PAR
MATURITY RATE Y. VALUE COST
---------------------------------------------------------
12-31-87 7.337- $9,066,004 $9,066,004
12-31-87 5.922 1,667,356 1,667,356
10,733,360 10,733,360
1-04-88
1-11-88
1-13-88
02-15-90
06-30-90
09-30-90
02-15-91
08-15-92
05-15-96
11-15-97
11-15-00
12-10-90
06-15-92
09--27-93
04-11-94
08-12-96
10-01-96
10-15-02
7.500
7.850
8.250
0.000
7.250
6_750
12.000
8.250
7.375
8.875
0.000
8.400
8.200
7.950
7.650
8.150
8.650
12.375
742,000
378,000
465,000
1,585,000
200,000
400,000
500,000
1,200,000
37000,000
900,000
1,000,000
1,000,000
82200,000
1,500,000
100,000
1,000,000
1,250,000
1,000,000
1,500,000
600,000
6,950,000
741,073
376,928
•461,910
1,579,911.
168,620
397,138
482,891
898,541
3,000,922
879,489
991,943
306,270
7,125,814
1,501,367
99,375
1,028,086
1,187,012
1,012,205
1,496,510
622,522
6,947,077
MARKET
VALUE
$9,066,004
1,667,356
10,733,360
741,073
376,928
461,910
1,579,911
169,780
394,000
484,375
924,084
2,983,110
819,279
1,000,620
307,580
7,082,828
1,503,285
99,808
956,870
1,168,362
926,870
1,422,180•
709,776
6,787,151
i
i
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
SECURITIES (EXCEPT COMMON STOCK)
DECEMBER 31, 1987
NOMINAL
PAR
MARKET
SECURITY
-------------------------------------------------------------------------------------------------------------
MATURITY
RATE %
VALUE
COST
VALUE
PASSTHROUGHS
GNMA
12-15-03
8.000
$468,586
$449,519
$411,620
GNMA
11-15-05
8.000
320,617
307,385
281,640
GNMA
10-15-06
8.000
3B9,681
374,559
342,307
GNMA
05-15-08
8.250
403,407
.378,779
369,997
FHLM
07-01-09
4.250
291,752
205,979
220,273
GNMA
01-15-10
11.000
645
658
672
TOTAL PASSTHROUGHS
1,874,688
1,716,879
1,626,509
MUNICIPALS
ALASKA HOUSING FINANCE CORP.
06-01-93
10.750
291,000
291,454
293,395
LOUISIANA HOUSING FINANCE AGENCY REV
08-01-96
8.610
1,000,000
896,029
891,840
MEMPHIS HEALTH EDL & HSG BRD RV
9-15-96
8.680
750,000
748,303
676,957
LOUISIANA AGRICULATURAL FIN AUTH REV
10-01-96
8.800
750,000
756,280
727,500
EL PASO HOUSING FINANCE CORP
10-15-96
8.880
750,000
754,284
731,250
ADAMS CO. COLO
11-01-96
9.000
750,000
757,338
685,973
TOTAL MUNICIPALS
4,291,000
4,203,688
4,006,915
FINANCE
CHRYSLER FINANCIAL CORPORATION
09-15-89
13.400
400,000
400,000
424,000
GENERAL MOTORS ACCEPTANCE CORP.
11-01-90
8.875
1,000,000
999,320
998,650
ASSOCIATES CORP. N.A.
05-01-92
8.250
500,000
490,658
479,740
CFC-2 GRANTOR TRUST
11-15-92
8.550
98,224
97,840
99,268
HOUSEHOLD FINANCIAL CORP.
12-15-93
9.500
1,000,000
981,340
999,930
ASSOCIATES CORP. N.A.
08-15-94
12.750
600,000
695,631
690,714
GENERAL MOTORS ACCEPTANCE CORP.
03-01-96
8.875
700,000
712,152
662,214
AMERICAN EXPRESS CREDIT CORP.
12-01-96
7.875
500,000
497,325
449,095
FORD MOTOR CREDIT CO
01-15-97
7.875
1,000,000
995;500
889,150
MARINE MIDLAND BANKS INC
03-01-97
8.625
750,000
748,614
677,280
FIRST FIDELITY BANCORPORATION
04-01-98
8.500
1,000,000
927,258
893,650
BARNETT BANKS FLORIDA INC
03-01-99
8.500
250,000
253,953
224,405
FIRST FEDERAL SAV & LOAN ASSN. AZ
11-01-06
ZERO COUP
1,000,000
204,103
146,340
TOTAL FINANCE
8,798,224
8,003,694
7,634,436
SECURITY
-------------------------------------
INDUSTRIAL
UNISYS CORP.
PHILLIP MORRIS COMPANIES INC.
USG CORP.
TOTAL INDUSTRIAL
PUBLIC UTILITY
NEW JERSEY POWER & LIGHT CO.
GEORGIA POWER CO.
GENERAL TELEPHONE & ELECTRONICS CORP.
PENNSYLVANIA POWER CO.
MICHIGAN BELL TELEPHONE CO.
DETROIT EDISON CO.
PUGET SOUND POWER & LIGHT CO.
ROCHESTER GAS & ELECTRIC CORP.
NEW ENGLAND POWER CO.
TOTAL PUBLIC UTILITY
REAL ESTATE
GIBRALTAR SAVINGS & LOAN ASSN
TOTAL REAL ESTATE
TRANSPORTATION
BALTIMORE & OHIO RAILROAD CO.
UNION TANK CAR CO.
MISSOURI PACIFIC RAILROAD CO.
LOUISVILLE & NASHVILLE RAILROAD CO.
TOTAL TRANSPORTATION
FOREIGN
EXPORT DEVELOPMENT CORP
TOTAL FOREIGN
TOTAL SECURITIES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
SECURITIES (EXCEPT COMMON STOCK) "
DECEMBER 31, 1987
NOMINAL PAR
MATURITY RATE % VALUE COST
------------------------------------------------------
09-02--92
8.950
$1,100,000
$1,100,000
12-15-95
9.700
700,000
744,666
12-15-96
8.000
800,000
797,120
2,600,000
.2,641,786
07-01-90
4.875.
25,000
25,095
11-01-90
4.875
50,000
49,147
12-01-91
15.500
600,000
659,424
09-01-92
4.375
75,000
73,745
11-01-92
4.750
147,000
143,B15
06-15-93
9.875
1,000,000
1,000,000
11-01-93
4.625
20,000
20,000
09-15-94
4.625
1201000
119,799
10-01-97
6.875
100,000
99,434
2,137,000
2,190,459
08-01-89
9.500
100,000
100,000
100,000
100,000
10-01-89
8.500
100,000
100,606
07-01-90
9.875
20,000
20,134
09-15-93
15.500
450,000
514,173
09-01-94
10.500
300,000
298,792
870,000
933,705
01-01-91
8.750
1,600,000
1,608,304
1,600,000
-----------
1,608,304
-----------
MARKET
VALUE
$1,089,440
'700,175
646,048
2,435,663
22,774
45,016
634,824
61,169
123,849
985,140
15,7B9
89,888
82,596
2,061,045
101,322
101,322
100,057
20,469
576,648
319,002
1,016,176
1,607,552
1,607,552
$49,739,272 $47,784,677 $46,672,868
POLICE
STOCK
CITY OF LANSING
AND FIRE RETIREMENT SYSTEM
COMMON STOCK
DECEMBER 31, 1987
NUMBER OF
SHARES COST
ADAMS MILLIS CORP
ALLTEL CORP
AMERICAN EXPRESS CO
AMERICAN INFORMATION TECHNOLOGIES CORP
AMOCO CORP
APPLE COMPUTER INC
ARISTECH CHEMICAL CORP
ATLANTIC RICHFIELD CO
AVON PRODUCTS, INC
BALTIMORE BANCORP
BANK OF NEW YORK CO INC
BANKERS TRUST NEW YORK CORP
CERTAIN TEED CORP
CHRYSLER CORP
CONSOLIDATED FREIGHTWAYS INC
CONSOLIDATED NATURAL GAS CO
CONSOLIDATED RAIL CORP
CROWN CORK & SEAL CO INC
DIGITAL EQUIPMENT CORP
DOMINION BANKSHARES CORP
DONNELLEY R.R.& SONS CO
EMHART CORP VA
FOOTE CONE & BELDING COMMUNICATIONS INC
FORD MOTOR CO
GENCORP INC
GENERAL SIGNAL CORP
GTE CORP
HARTFORD STEAM BOILER INSPECTION & INS CO
HEALTH CARE PROPERTY INVESTORS INC
HEWELETT-PACKARD CO
HOSPITAL CORPORATION OF AMERICA
HUMANA INC
INFORMATION RESOURCES INC
ITT CORP
KOPPERS COMPANY INC
LA-Z-BOY CHAIR CO
LINCOLN TELECOMMUNICTIONS CO
LUBRIZOL CORP
MARION LABS.INC
MCDONALDS CORP
MELVILLE CORP
MERCANTILE BANKSHARES CORP
MERCANTILE STORES INC
MERCK & COMAPNY INC
29,500
4,500
8,000
5,000
7,000
17,000
10,000
1,000
11,000
22,000
15,000
4,000
5,000
4,500
4,800
3,700
'3,000
2,900
4,000
9,000
5,500
5,100
3,000
7,000
12,000
13,000
5,000
10,000
12,000
8,000
8,500
28,000
20,000
7,000
18,000
8,000
10,000
17,000
20,000
13,000
6,200
8,000
5,000
2,800
$490,680
139,713
298,560
435,240
592,790
490,070
332,968
95,686
398,741
441,490
428,400
182,959
199,100
157,425
164,180
141,130
107,815
363,463
647,733
187,881
162,203
123,810
172,357
531,419
441,926
530,220
199,416
319,016
298,500
435,688
397,902
662,474
406,250
449,299
778,592
156,250
253,598
667,106
513,497
590,055
483,281
328,000
228,200
398,195
MARKET
VALUE
$287,625
129,938
183,000
423,125
483,000
714,000
271,250
69,000
283,250
247,500
386,250
127,000
125,000
99,563
132,000
135,050
82,875
305,950
540,000
159,750
179,438
107,100
129,000
527,625
267,000
611,000
176,875
230,000
330,000
466,000
264,562
539,000
200,000
311,500
567,000
128,000
265,000
558,875
490,000
572,000
328,600
266,000
185,000
443,800
-13-
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
COMMON STOCK
DECEMBER 31, 1987
NUMBER OF
MARKET
STOCK
-------------------------------------------------------------------------------------
SHARES
COST
VALUE
MINE SAFETY APPLIANCES CO
5,000
$202,500
$127,500
MINNESOTA MINING & MANUFACTURING CO
8,000
447,640
515,000
MONSANTO CO
2,000
190,016
166,000
MORRISON KNUDSEN CORP
14,000
615,035
465,500
NATIONAL EDUCATION CORP
20,000
389,674
395,000
NATIONAL FUEL GAS CO
12,000
264,620
201,000
NATIONAL PRESTO INDUSTRIES INC
5,000
166,595
131,250
NATIONAL SERVICE INDS INC
12,000
305,114
255,000
NEWELL CO
5,000
176,382
140,625
NYNEX CORP
8,000
579,888
514,000
OSHKOSH TRUCK CORP
11,000
333,750
165,000
PENNEY J C CO
7,000
418,364
303,625
PFIZER INC
8,000
579,870
373,000
PHILIP MORRIS COMPANIES INC
4,000
428,332
341,500
POLICY MANAGEMENT SYSTEM CORP
15,000
393,000
288,750
PURITAN-BENNETT CORP
25,500
299,196
490,875
QUESTAR CORP
10,000
398,739
322,500
ROYAL DUTCH PETROLEUM CO
6,000
384,540
671,250
RYDER SYSTEM INC
23,000
546,891
609,500
SCOTT PAPER CO
4,000
332,063
282,000
SMITHKLINE BECKMAN CORP
7,000
402,477
339,500
SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP
8,000
438,995
361,000
SQUIBB CORP
7,500
433,158
457,500
STARRETT L S CO
5,000
223,490
200,000
STUDENT LOAN MARKETING ASSOCIATION
9,000
714,425
634,500
TECHNITROL INC
8,000
164,517
160,000
TECUMSEH PRODUCTS CO
2,000
253,411
258,000
TENNECO INC
10,000
408,300
397,500
TEXTRON INC
6,000
1971098
135,750
THERMO ELECTRON CORP
30,000
401,970
408,750
UNION CAMP CORP
14,000
473,584
507,500
USX CORP
20,000
584,906
595,000
VULCAN MATERIALS CO
3,000
424,545
393,000
WALTHAM CORP
43,000
612,500
516,000
WASTE MANAGEMENT INC
18,000
321,922
677,250
WAUSAU PAPER MILLS CO
17,000
557,980
509,575
WESTINGHOUSE ELECTRIC CORP
5,000
292,960
248,750
WILLCOX & GIBBS INC
7,500
121,565
115,312
WITCO CORP
12,200
532,974
407,175
WOOLWORTH F W CO
9,000
405,945
310,500
XEROX CORP
10,000
595,646
-----------
566,250
-----------
TOTAL
$31,839,855
$28,286,188
-14-
CITY OF LANSING
' POLICE & FIRE RETIREMENT
SYSTEM
INVESTMENT PORTFOLIO ANALYSIS
DECEMBER 31, 1987
Par Value
---------
Percentage
----------
Repurchase Agreement
$10,733,360
13.20%
U.S. Treasury Notes
5,600,000
7.10%
Bonds:
Moody's "AAA"
6,850,000
8.40'%
Moody's "AA"
4,138,000
5.10%
Moody's "A"
7,340,000
9.00%
Moody's "BBB"
1,670,000
2.00%
Not rated (U.S. Government & Agencies)
13,207,912
16.20%
Total bonds
------------
33,205,912
-------
61.00%
Common Stocks at cost
31,839,855
39.00%
Total investments
$81,579,127
-----------
-----------
100.00%
-------
-------
CLASSIFICATION OF BONDS
Cash equivalents
Demand obligations
$10,733,360
21.60%
Bonds:
Commercial Paper
1,585,000
3.20%
U.S. Treasuries
8,200,000
16.50%
Agencies
6,950,000
14.00%
Passthroughs
1,874,688
3.80%
Municipals
4,291,000
8.60%
Finance
8,798,224
17.70%
Industrial
2,600,000
5.20%
Public Utility
2,137,000
4.30%
Real Estate
100,000
0.20%
Transportation
870,000
1.70%
Foreign
1,600,000
------------
3.20%
-------
Total
$49,739,272
------------
------------
100.00%
-------
-------
-15-
City of Lansing
Police and Fire Retirement System
Statement of Membership
December 31, 1987
Membership - December 31, 1986
Add:
New members during year
Total
Deduct:
Members retired 18
Resigned and contributions refunded 3
Membership - December 31, 1987
Active Members
Deferred
Duty Disability
Inactive
Totals
Summary of Membership
Number
Annuity Savings
475
$7,452,147
3
52,486
24
329,052
5
24,582
507
$7,858,267
516
12
528
21
507
Service Credit Months
78,147
568
5,706
253
84,674 .
-16-
City of Lansing
Police and Fire Retirement
System
Retirants and Beneficiaries
December 31, 1987
Annual Benefits
Type of Benefits Being Paid:
Number
Being Paid
Age and Service Benefits:
Regular service - benefit
terminating at death of retirant
13
$ 99,252
Regular service - potential 50%
survivorship benefit to widow
202
3,298,304
Option I benefit - 100% joint and
survivor
3
15,010
Option II benefit - 50% joint and
survivor
10
62,590
Beneficiaries
38
179,320
Total age and service benefits
266
$3,654,476
Casualty Benefits:
Duty disability
49
$ 795,438
Duty disability beneficiaries
4
30,436
Non -duty disability
1
13,196
Non -duty disability beneficiaries
1
741
Duty death beneficiaries
8'
37,559
Non -duty death beneficiaries
6
32,261
Total casualty benefits
69
909,631
Total benefits
335
$4,564,107
-17-
Name
McElroy, William
Reck, James
Burnett, Stanley
Maddern, Herbert J.
Holliday, Mark
Cook, Richard F. Sr.
Miles, Richard D.
Ross, Michael
Doyle, Raymond
Lemons, Martin
Sartor, James
Powers, Gary
Anderson, Merle
Bissell, Robert
Gleason, Richard
Hastings, Duane Lee
Holliday, Russell
Bliesener, Gary
City of Lansing
Police and Fire Retirement System
Members Retired During 1987
Date of Age at' Service Type of
Retirement Retirement Yrs. Mos. Retirement
01/87
53
25
08
01/87
55
31
11
03/87
62
39
00
03/87
55
30
11
04/87
56
32
02
04/87
56
33
05
05/87
48
25
00
05/87
48
26
01
06/87
57
34
00
06/87
48
24
02
07/87
55
30
07
07/87
52
25
11
07/87
58
33
00
07/87
51
25
00
07/87
62
37
02
09/87
55
28
03
09/87
55
31
07
11/87
48
23
03
-18-
Annual
Retirement
Benefit
Regular
$21,749.16
Regular
28,041.84
Regular
38,512.68
Duty Dis.
to Reg.
20,591.76
Regular
37,920.72
Regular
23,784.60
Regular
21,901.92
Regular
22,169.28
Regular
23,126.16
Duty Dis.
to Reg.
23,427.96
Duty Dis.
to Reg.
22,346.28
Regular
23,802.60
Regular
28,745.52
Regular
25,724.76
Regular
45,322.68
Duty Dis.
to Reg.
21,049.92
Duty Dis.
to Reg.
28,077.72
Duty Dis.
to Non
Duty Death
10,113.84
Total $466,409.40
City of Lansing.
Police and Fire Retirement System
Beneficiaries Added to Roll 1987
Date
Name
Added
Hibbard, C. Elaine
02/87
Droste, Kathleen
05/87
Zuk, Clara
06/87
Bliesener, Phyllis
11/87
Warner, Cuma
12/87
Reinstated Widows
Beach, Jane (Strager)
01/87
Miller, Ethel
01/87
Simkus, Shirley
01/87
Sweitzer, Mary
01/87
Age at
Type
of
Retirement
Retirement
36
Widow
Benefits
67
Widow
Benefits
59
Widow
Benefits
55
Widow
Benefits
81
Widow
Benefits
72 Widow Benefits
66 Widow Benefits
53 Widow Benefits
54 Widow Benefits
Total
Annual
pn+-i rcmc»t
$11,006.28
5,024.28
9,647.88
10,113.84
5,150.04
5,207.16
3,009.72
4,025.16
3.916.56
$57,100.92
-19-
Name
Hibbard, Joseph
Droste, Jerome
Griffin, Lyle
Zuk, Felix
Bliesene_r, Gary
Warner, George
City of Lansing
Police and Fire Retirement System
Terminations 1987
Date of
Termination
Death
02/87
05/87
05/87
06/87
11/87
12/87
Annual
Type of Retirement
Regular $21,371.28
Regular 10,048.56
Regular/Term 5,150.04
Regular 19, 295.64
Duty Dis. 14,963.88
Option I 5,150.04
Total $75,979.44
-20-